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Read. Follow. Verify.North Carolina Enacts the P.A.V.E. Act Authorizing Mecklenburg County Sales Tax Referendum and New Transportation Authority
Last action · July 1, 2025: Ch. SL 2025-39Sponsors: Tricia Cotham and 10 others
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What This Bill Would Do
The General Assembly of North Carolina enacted House Bill 948, known as the P.A.V.E. Act, which authorizes the Mecklenburg County Board of Commissioners to hold a local on a 1% sales and use tax for roadway and public transportation systems and establishes a framework for a new .
Residents of Mecklenburg County may vote on an additional 1% local sales tax, the proceeds of which will be divided between roadway construction and public transportation infrastructure, while altering how transit funds and assets are managed across local municipalities.
- North Carolina counties operate under state statutes that govern local option sales taxes and public transportation authorities. context
- The Charlotte Area Transit System (CATS) has historically operated public transit services under interlocal agreements between Mecklenburg County and participating municipalities in the region. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Mecklenburg County residents
Residents are subject to a potential 1% local sales and use tax if approved by referendum and will experience changes in local roadway and public transportation infrastructure.
City of Charlotte
The City of Charlotte must transfer operational control of CATS assets to the new Authority, receive reimbursements for property acquisitions like the O-Line, and retain specific debt service reserves.
Charlotte Area Transit System employees
Employees of CATS are transferred from the City of Charlotte to the new Authority and are ensured participation in the Local Government Employees' Retirement System.
Towns of Cornelius, Davidson, and Huntersville
These municipalities receive roadway distributions based on mileage and population formulas and must be consulted on design and station locations for the Red Line rail project.
Key Facts
- Authorizes the Mecklenburg County Board of Commissioners to direct the county board of elections to conduct an advisory referendum on a 1% local sales and use tax for roadway and public transportation systems.
- Exempts the sales price of food and certain bundled transactions from any tax levied under Part IV of the act.
- Directs Mecklenburg County to distribute 40% of the net proceeds of the tax for roadway distribution and use among eligible municipalities, and 60% of the net proceeds to the newly created Metropolitan Public Transportation Authority.
- Requires the Authority to complete at least 50% of the Red Line rail project before completing any other rail project, barring force majeure events.
Show all 8 facts
- Establishes a 27-member initial board of trustees for the metropolitan public transportation authority with specific appointment allocations from county and municipal governing bodies.
- Caps the aggregate liability of the authority and participating railroads for a single accident or incident related to passenger rail services at $200 million.
- Mandates that the Authority maintain a minimum of $20 million in liability insurance and waives governmental immunity to that extent.
- Requires the Authority to submit an annual operating report and audited financial report to the General Assembly and relevant transportation oversight committees.
Frequently Asked Questions
What does the P.A.V.E. Act allow Mecklenburg County to do?
How are the sales tax proceeds divided if approved?
Who governs the newly created metropolitan public transportation authority?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently passed both. The next step in the legislative lifecycle is Law.
Procedural history
33 actions- Jun 26, 2025HouseOrdered Enrolled
- Jun 26, 2025HouseConcurred In S Com Sub
- Jun 26, 2025HouseAdded to Calendar
- Jun 26, 2025HouseSpecial Message Received For Concurrence in S Com Sub
- Jun 26, 2025SenateSpecial Message Sent To House
- Jun 26, 2025SenateEngrossed
Show 27 earlier actions
- Jun 26, 2025SenatePassed 3rd Reading
- Jun 25, 2025SenatePassed 2nd Reading
- Jun 25, 2025SenateAmend Adopted A1
- Jun 25, 2025SenatePlaced on Today's Calendar
- Jun 25, 2025SenateReptd Fav
- Jun 24, 2025SenateRe-ref Com On Rules and Operations of the Senate
- Jun 24, 2025SenateCom Substitute Adopted
- Jun 24, 2025SenateReptd Fav Com Substitute
- Jun 24, 2025SenateRef to Finance. If fav, re-ref to Rules and Operations of the Senate
- Jun 24, 2025SenatePassed 1st Reading
- Jun 24, 2025SenateSpecial Message Received From House
- Jun 24, 2025HouseSpecial Message Sent To Senate
- Jun 24, 2025HouseOrdered Engrossed
- Jun 24, 2025HousePassed 3rd Reading
- Jun 18, 2025HousePlaced On Cal For 06/24/2025
- Jun 18, 2025HousePassed 2nd Reading
- Jun 18, 2025HouseAmend Adopted A1
- Jun 18, 2025HouseAdded to Calendar
- Jun 18, 2025HouseCal Pursuant Rule 36(b)
- Jun 18, 2025HouseReptd Fav
- Jun 17, 2025HouseRe-ref Com On Rules, Calendar, and Operations of the House
- Jun 17, 2025HouseReptd Fav
- Jun 11, 2025HouseRe-ref Com On Finance
- Jun 11, 2025HouseReptd Fav Com Substitute
- Apr 14, 2025HouseRef to the Com on Transportation, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
- Apr 14, 2025HousePassed 1st Reading
- Apr 10, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
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Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Restructuring of Local Transit Governance
The act replaces existing interlocal transit agreements and dissolves the Metropolitan Transit Commission in favor of a new metropolitan public transportation authority.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz50Current news / social attention level
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